Buying your favorite stocks has become easier than ever. Online brokers have streamlined the process for opening accounts so you just need to know which company you want to buy and how many shares.
Let’s dive in on how you can buy Nike stock.
How to Buy Nike Stock
Buying Nike ($NKE) stock is surprisingly easy. Here are the 4 steps involved:
Step One – Conduct an Extensive Research of your Nike Stock
Before you buy shares in any company it is important to understand how a company is performing. But what data should you look at?
Some of the most basic data is revenues, earnings, and debt. Compare this to their competitors to understand how they are performing. You can also look at historical data to get a better understanding how the company has been growing.
Nike is in the retail industry, which has a lot of competition, but they have established themselves as one of the premier companies.
Step Two – Decide How Many Shares You Want to Buy
Now that you have researched the company and are comfortable purchasing shares, you need to know how many to buy. This part is different for each individual since everyone’s financial situation is different.
Start by understanding how much money you are comfortable with investing. You will also want to look at if you own other companies in the industry and how much. This is important for diversification because you don’t want to put too much money in one sector or company.
Now that you’ve decided how many shares you want to purchase, we can move onto Step 3.
Step Three – Open a Brokerage Account
Now that you have done your research and know how many shares you want to buy, it’s time to open an online brokerage account. Knowing which broker to choose can be a daunting task since there are so many out there with different benefits for investors.
Some considerations to consider when opening a broker account:
- Is the broker legitimate (have they been around a while and have a good track record)
- What are their commissions
- Do they have higher fees than other brokers
- Do they have a mobile app
These are just a few things to ask yourself when shopping brokers.
Once you’ve decided on a broker you can now begin the application process. This takes about 10-15 minutes. Once this is complete and your account is opened, you can start the process of funding your new account!
Step 4 – Purchase Your Nike Stock
Your broker account is open and funded, what’s next? It’s time to head to the order entry window and place your order.
To buy Nike stock, search for the company’s ticker symbol “NKE”. Proceed by specifying the number of shares you intend to purchase and the price. Select your order type. You have the following main choices:
- Market Order – instructs the brokerage to buy the stock at the best available price at that time.
- Limit Order – instructs the brokerage to buy the stock at a specific price.
Once you hit the “Execute Trade” button, the online broker will present a screen showing what you are about to buy. The reason for doing so is to ensure that traders do not execute unwanted trades. After executing the trade, an email is sent confirming your purchase.
Now, you are the proud owner of Nike stock.
Now that you have bought shares in Nike, you will need to keep track of their progress.
Since you have made your initial investment, you may decide to increase your shares at a later date. To do this, you need to keep abreast of the performance of the stock. That means, reading company news and keeping an eye on the share price.
It’s also a smart decision to place a stop order in case the stock trades against your position. This will help reduce losses.